(New York) Oil prices, on an upward slope in the session, ended close to equilibrium on Thursday, after weak indicators and further tough remarks from Fed members.
Posted at 5:00 p.m.
The barrel of Brent from the North Sea for December delivery stagnated (-0.03%) at 92.38 dollars after advancing more than 2% a few hours earlier.
A barrel of US West Texas Intermediate (WTI) for delivery in November, which is the last trading day, climbed 0.50% to 85.98 dollars, also reducing its rise.
“Prices changed direction after Philadelphia Fed President Patrick Harker said the central bank was ‘disappointed’ with the lack of progress in tackling inflation and that rates needed to rise. more, so the economy will slow down,” said Phil Flynn of Prices Futures Group.
These prospects of lower demand have slowed crude prices, according to the analyst.
These words also allowed the dollar, which was down earlier in the day and therefore favorable to a rise in crude oil prices, to recover and weigh on prices.
President Joe Biden also announced on Wednesday that the United States would draw an additional 15 million barrels from its strategic reserves, which corresponds to the last tranche of the 180 million barrel program announced in the spring.
This measure seeks to compensate for the cut in the production target of the Organization of the Petroleum Exporting Countries and their allies (OPEC+) of 2 million barrels per day, decided at the last meeting of the alliance in early October.
Since the beginning of September 2021, the US government has drawn some 216 million barrels from its strategic reserves.
The latter have reached their “lowest level since May 1984”, underlined Stephen Brennock, of PVM Energy.